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HONG KONG's high-net-worth individuals may have their pick of the lenders when buying property in Britain, but the choice for middle-to low-income earners is limited.

 Those with big bank accounts may plump for Swiss private bankers Bank Julius Baer. The bank's typical clients are millionaires in United States dollars, Bank Julius Baer's chief Hong Kong representative Harry Cheung said.

  Mr Cheung said the bank would give mortgages only to ''high-net-worth individuals with not less than US$1 million in their account with Julius Baer''.

  His clients were looking for residences in London worth at least GBP250,000 (about HK$2.97 million), but usually the bank granted mortgages for properties worth from GBP1 million to GBP2 million, he said.

  The bank will provide loans in a variety of different currencies, including Hong Kong dollars, US dollars and pounds sterling.

 It will provide up to 70 per cent of the price, and the borrower may repay in only a month. Alternatively, the customer has no obligation to repay the principal for 25 years, paying only the interest, provided the loan is rolled over.

 Interest on the loan is charged at two per cent per year. An arrangement fee of 0.5 per cent is charged for all mortgages.

 Mr Cheung said Julius Baer could also advise customers how to reduce exposure to tax while making property investments.

  The Bank of Scotland provides loans only of GBP100,000 or more. Loans are available for 70 per cent of the purchase price or valuation of the property, whichever is lower.

 Borrowers can take out a mortgage in either Hong Kong dollars, US dollars or pounds, and can switch from one currency to another during the repayment period.

 Mortgagers can repay the loan with interest on a quarterly basis or link interest-only payments to an endowment policy or pension plan.

   All loans must be repaid within 15 years.

  Interest is charged at the bank's prime lending rate plus two per cent for loans taken out in Hong Kong dollars; at 1.75 per cent for mortgages in US dollars; and at 1.5 per cent for loans in pounds.

  The Bank of Scotland's arrangement fees are 0.5 per cent for individuals and one per cent for companies.

 The Royal Bank of Scotland usually grants loans of at least GBP75,000.

  Tom Hayes, banking manager at the Royal Bank of Scotland, said borrowers could receive advice on tax relief on their interest payments from the bank's British-based taxation department.

  For those buyers looking for small loans, two firms - The Mortgage Company, and Professional Independent Mortgage Services (PIMS) - may be of help, although they also provide large loans.

  Loans of as little as GBP10,000 are available from The Mortgage Company, which can arrange fixed-interest-rate mortgages in association with the British-based Newcastle Building Society.

  Stewart Davies, sales and marketing manager of The Mortgage Company, said the fixed-rate mortgages were available to both investors looking to rent their properties and to owner occupiers.

  PIMS will provide mortgages as low as GBP15,000 to GBP20,000, PIMS director, David Cockerton said.

  ''PIMS puts in the same time and effort for a GBP50,000 mortgage as for a GBP500,000 mortgage,'' Mr Cockerton said.

   PIMS has been offering mortgages on British property to Hong Kong customers since April.

  It is affiliated to Pannell Kerr Forster.

    PIMS will provide mortgages equal to 80 per cent of the value of the property.

   Mr Cockerton said bigger mortgages were available to individuals who were moving to Britain within 12 months of taking out the loan.



Loan packages cover big and small buyers